Crypto’s market cap slumps to $1.5 trillion after Russia launched an attack on Ukraine back on Thursday as we reported in our cryptocurrency news today.
The crypto market tumbled by 9% with some analysts saying that the asset is a risky offering. Crypto’s market cap slumps to $1.5 trillion and lost 9% in the past 24 hours after Russia launched a special military operation against Ukraine. The prospect of damaging to the global economy weighed on broader financial markets with the Stoxx 600 Europe index falling more than 3% and Russia’s MOEX equity index dropping a record 28%.
In the past 24 hours, BTC dropped by 8% and hit $34,725 in the early Asian hours. The fear and green index was a tool used to calculate public sentiment of the crypto market and dropped 2 points to a fear level reading of 23. The tension around Ukraine exerted strong pressure on risky assets according to FXPro analyst Alex Kuptisikevch:
“There are growing risks of escalation associated with the introduction of Russian troops into Donbass. In such a situation, risky assets may continue to decline further.”
![crypto market cap](https://wordpress-1016567-4521551.cloudwaysapps.com/wp-content/uploads/2022/02/cryptos-market-cap-slumps-to-1-5t-after-russia-attack-on-ukraine.png)
The drop in crypto shows the sector remains a nascent asset class comapred with the traditional markets:
“We see that cryptocurrencies are selling stronger than developed world stocks, confirming the risky nature of these assets and how they are not a replacement for gold.”
The losses on the crypto-tracked futures reached over $250 million during the early Asian hours as most cryptocurrencies crashed by 10% and in the past 24 hours, ETH lost 12% of the value with Cardano’s ADA and SOL dropping as much as 16%. The investors continue to hold BTC as per the metrics tracked on Glassnode but the wallets of long-term investors hold record volumes of BTC at 76.5% despite the drop in prices which suggests that some investors continue to nurture the heading capabilities of the world’s biggest cryptocurrency.
![total crypto market](https://wordpress-1016567-4521551.cloudwaysapps.com/wp-content/uploads/2022/02/cryptos-market-cap-slumps-to-1-5t-after-russia-attack-on-ukraine-1.png)
Bitcoin reminded me of the enhanced volatility in the past day or so after a huge price slump to over $34,000 and a fast recovery to above $38,000. Most other altcoins are also in the green on a daily scale after some strong retracement from a day ago. The not-so-boring days in the crypto space received furhter validation over the past few days and BTC for example, challenged the $39,000 before it started to lose value gradually after the Russian attack on Ukraine.
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